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09-10-2008, 12:59 PM | #1 |
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To Lease or Not To Lease....
Wanted to share my situation and why I ended up choosing the lease option.
I made a decision that I did not want to own this car without a warranty so I was evaluating total cost over 6 years/90 K miles rather than a monthly payment that I could swing. So, given that assumption, my lease deal turned out to be pretty close to buying/trade-in. Buy: invoice + dealer profit + upfront costs + finance payments + 1 set of tires + CPO costs - trade in amount = total cost of owning car for 6 years The problem was that there were no good financing rates like 0% or 0.9% available and even if I could pay cash up front, I would have to pay the full sales tax and then take a loss on the trade-in. Plus, it was tough negotiating a deal close to invoice price. At the end of the warranty 4yr/60K, I would trade it in but turn it into a CPO and get the extended warranty up to 6yr/100K. The problem is that you have to pay for whatever is needed to get the CPO certification (repair all dents, dings, scratches, new tires, etc. which averages around $2,000 from what I was told) and then take another loss at the next trade-in at the end of the CPO. Lease: I didn't have to pay the full sales tax up front. I was able to get a 2 year lease which means the car wouldn't need new tires by the time I turned it in for a new one. I was able to get a deal ($500) on their Lease Protection Plan which covers all of the repairs (up to $5K) when you turn it in and they put that amount into the lease payment. The total came out to $15K for 2 years @ 15K miles/year including lease payments and up-front costs. Because BMWFA likes to lease cars, they have an owner loyalty program where you can get your next car at same or better lease terms. I made the assumption that I could expect another $15K for the next car in 2 years from now and so on. So total cost of leasing would be $45K for 6 years. I went with the lease because it was so close. Plus it means a brand new car every 2 years and although I do wash it every week treat it like my baby, I kinda feel like I can really have fun with it without worrying about long term effects.... if you know what I mean. Thoughts?? Comments??
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09-10-2008, 01:37 PM | #3 |
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Lease it. When (and hopefully if) the hatch comes, get that
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09-11-2008, 12:53 AM | #4 | |
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09-11-2008, 01:18 AM | #5 |
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09-11-2008, 08:14 AM | #6 | |
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Drive off $5K 23 payments of $456 Residual $31,654
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